Japan’s Ministry of Economy, Trade, and Industry said today that industrial production rose 0.1% in February. This is the first increase in three months as a recovery in global demand has boosted Japanese auto production. The move is a positive sign for the government, which hopes to help the economy recover from its weakness.
Japanese industrial production rose by less than analysts had expected in February (+0.5%), suggesting that the Japanese economy is still struggling with the effects of supply bottlenecks and other risks such as higher raw material costs.
Production in the automotive industry rose by 10.9% in February after slumping by 17.3% in January due to the rapid spread of the coronavirus. The Omicron strain has led to the temporary closure of auto parts factories in Japan.
Based on an opinion poll of manufacturers, the Japanese Ministry of Economy forecasts that industrial production will continue to increase. It is expected to grow by 3.6% in March and by 9.6% in April.